Urging Hawaii's Congressional Delegation To Introduce And Support Legislation That Would Repeal The $10,000 Limitation On The Deduction For State And Local Taxes Enacted By The Federal Tax Cuts And Jobs Act Of 2017.
The resolution points out that the SALT cap contributes to a growing deficit in state budgets, which must be counterbalanced by cuts in spending or increased revenue generation. By removing this cap, it is anticipated that Hawaii residents would see their after-tax incomes rise, enhancing their capacity to spend on goods and services. This, proponents argue, is crucial for economic recovery, particularly in areas hit hard by the pandemic and economic downturn.
SCR80 is a Senate Concurrent Resolution urging Hawaii's congressional delegation to support legislation aimed at repealing the $10,000 cap on state and local tax (SALT) deductions established by the Tax Cuts and Jobs Act of 2017. This legislative cap has significantly impacted taxpayers across Hawaii by reducing their after-tax income, which has led to increased financial strain and overall economic hardship within the state. The resolution highlights the challenges faced by Hawaii residents, who experience a higher cost of living compared to other states, and argues that the SALT cap disproportionately affects them.
Ultimately, SCR80 serves as a call to action for Hawaii’s congressional delegation to advocate for changes that would alleviate financial burdens imposed by federal tax policies. The resolution emphasizes a broader need for tax relief and aims to rally support for measures that recognize the specific economic conditions and challenges faced by Hawaii residents.
Notably, there is contention over whether repealing the SALT cap would adequately address the tax burdens on Hawaii residents. Opponents of such a repeal may raise concerns regarding the feasibility of changing federal tax legislation and the overall implications for the national budget. Furthermore, local lawmakers might worry that repealing the SALT cap could shift the tax burden in ways that might not evenly distribute benefits among all taxpayers in Hawaii.